asked the Minister for Tourism, Fisheries and Forestry the total current value of Irish State forests.
Written Answers. - State Forests.
23.
There is no definitive method of valuing a forest estate and to say the least the exercise is a complex one. Because of the long term nature of the forestry enterprise, the valuation of the estate at any time is highly sensitive to assumptions made as to the rate of interest, in real terms, that may be expected on the investment and the likely trends in timber prices over a period extending up to 50 years. By assuming different rates of interest the review group on forestry estimated the value of the State forest estate as between £2,500 million and £350 million. The group did, however, state that the State forestry enterprise had succeeded in achieving profitability of 2 per cent over and above inflation. Assuming a continued profitability level of this order, the value of the estate would be in the region of £1,100 million.
The methodology used by the review group in their calculations is set out in Appendix 4 of their report a copy of which is available in the Library of the House.
Questions Nos. 12, 24 and 25 re-entered for oral reply.